Payment Systems: Fraudulent Signatures, Alterations and Negligence Podcast

The topic of this podcast is to address the liability that arises when there is a fraudulent signature on an instrument, as well as the effect of alterations and negligence. These rules are covered in Article 3 of the Uniform Commercial Code, which is tested in a number of states on the bar exam. At the conclusion of this podcast, you should be able to (1) describe when a signature is sufficient to make a person liable on instrument; (2) describe how Article 3 treats responsibility for alterations; and (3) describe when the failure to exercise ordinary care will shift responsibility on the grounds of negligence to an account holder.